US and China sign new power deal

In a major breakthrough for China’s quest to acquire latest US nuclear energy technology, the two governments on Saturday signed a MoU that paves the way for the US-based Westinghouse Electric Co. to provide technology fro four nuclear power units to be built in China.

The memorandum of understanding was signed by the Chairman of the National Development and Reform Commission (NDRC) Ma Kai and US Energy Secretary Samuel Bodman.

“The pact was signed to ensure the introduction of technology and the smooth construction of the nuclear power plants,” Xinhua news agency quoted a statement released by the NDRC, China’s top planning body.The US-based Westinghouse will provide China with the AP1000 technology, a light water nuclear reactor which has an advanced design and an automatic system to deal with emergencies.The deal was approved by China’s State Nuclear Power Technology Company (SNPTC) for four new nuclear power plants to be constructed at the Sanmen in east China’s Zhejiang Province and Yangjiang in south China’s Guangdong Province.

More Than a Nuke Deal:Analysts say China hopes to use the deal, which came after a two-day visit to Beijing by the US’ top economic policy-makers and amid fears of a surge in protectionist sentiment, to soothe more than just energy ties. “This is a relationship driven,” said David Hurd, energy analyst at Deutsche Bank in Beijing.